Rocky Brands Exceeds Expectations in Q3 2026: Double-Digit Sales Growth and Strong Brand Performances
Rocky Brands, Inc. recently released its third quarter fiscal 2026 earnings conference call transcript, showcasing a remarkable performance that exceeded expectations across the board. The company's sales increased approximately 13%, marking their second consecutive quarter of double-digit top-line growth and an acceleration from the 12% gain delivered in Q2.
The impressive growth was driven by several of its brands achieving double-digit gains, led by Durango, Muck, and XTRATUF. The company's Lehigh CustomFit business also posted a solid performance, while strong sell-through on their own branded websites fueled a 20% increase in retail sales. Wholesale sales, the largest segment, saw an uptick of approximately 12%, with notable growth from top accounts such as Key Sports Goods and national outdoor retailers.
Jason Brooks, President and Chief Executive Officer of Rocky Brands, highlighted that when excluding the positive net impact from tariffs, gross margins increased by approximately 200 basis points from the second quarter to the low 40% range. This improvement in gross margins, combined with increased sales, drove profitability higher than planned and higher versus a year ago.
XTRATUF delivered another strong quarter, with direct-to-consumer sales leading the charge. Wholesale sales also saw significant growth, driven by top accounts such as Key Sports Goods and national outdoor retailers. The brand's core styles continued to shine, including the Duck Camo ADB and the ADB Sport.
Muck also had a standout quarter, with three new collections – Xplorer, Outmax, and Woodland Pro – making meaningful contributions to the change in sales year over year. Women's remained the fastest-growing segment for Muck, led by the Originals, the Muckster II, and the Chicken Boot.
Durango delivered an exceptional quarter, driven by strong new product shipments, store count additions, and fresh assortments at large retailers. The brand also benefited from larger orders from key Western retailers and sporting goods and outdoor accounts refreshing their assortments with a new Shyloh item.
The company's Q3 results demonstrate its ability to execute on growth strategies and capitalize on market trends. As Rocky Brands continues to navigate the competitive landscape, investors and analysts will be keenly watching for further evidence of this momentum in upcoming quarters."
